Winter beef finishers facing 'massive losses' as prices 'stagnate'
The Irish Cattle and Sheep Farmers' Association (ICSA) has said that winter beef finishers are facing "massive losses" as beef prices "stagnate".
Edmund Graham, the association's Beef Committee chairperson, said that these farmers are facing severe financial losses, with beef prices "well back" on last autumn’s levels.
"Once again, the extreme level of risk being carried by beef producers, and winter finishers in particular, is on full display," he said.
"I’ve been speaking to several winter finishers in recent days who tell me they’ve never lost as much money as they are losing right now," Graham added.
"Last autumn, they were buying store cattle at the going rate when beef was making around €7.80/kg. Today, when they go to sell, they are looking at quotes closer to €7.00/kg.
"That kind of swing wipes out any margin. When you add in feed and all the costs associated with carrying cattle through the winter, it becomes a massive financial hit," the ICSA beef chair said.
He said that the farmers concerned commit significant money to feed cattle through the most expensive period of the year with no guarantee of the price they will receive when they go to sell.
"How can any business plan around this level of uncertainty?”
"We also know factories are actively looking for cattle and are booking animals weeks in advance. Yet they are refusing to stand over a price, telling farmers they will be given a quote closer to the kill date," Graham claimed.
"That leaves farmers completely exposed. You are expected to supply cattle without knowing what you will be paid.
"At this time every year, we hear the same narrative about markets being under pressure or demand not being there."
However, Graham claimed that this is "hype being used to instil fear in farmers as a tactic to soften the trade".
"For [factories], it is all about managing throughput and messaging, while farmers shoulder the financial burden and take the hits. It’s clear this system is only working for one side of the supply chain, and it is not the farmer," he said.
